Keeping proper records and why: Since the current tax system is based on voluntary self-assessment, the various government agencies will, from time to time, call upon the taxpayer to verify all of the information presented. Be sure everything is in order to avoid the year end rush
- Are inserts A and D completely updated?
- Check each sleeve relevant to your tax-payer type to be sure all receipts are available
- Check Sleeve 8 to be sure all bank statements are accounted for
- Start collecting items that may be missing. Helpful Hint: Check wallet, purse, desk drawers, "mystery drawers", glove compartments, etc
It is important to have documentation all together in your TaxTimer in case of an audit/review. Possible triggers for an audit/review:
Federal, provincial or payroll taxes are in arrears
Consistent late filing of same
Significant increases or decreases in net income
Significant or unusual changes in personal circumstances
The responsibility of proof lies with the taxpayer
If you can't prove it, you can't claim it!
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